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Batesville
January 13, 2025
State Business

Arkansas Electric Cooperative Corporation Invests $93 Million to Expand Ozark Power Plant

OZARK, Ark. — Arkansas Electric Cooperative Corporation (AECC) is making a significant investment in Arkansas’s energy future with a $93 million expansion of the Thomas B. Fitzhugh Generating Station. The project is set to increase the power plant’s capacity by nearly 60%, ensuring a more reliable energy supply for the state’s residents and businesses.

Originally established in 1963, the Fitzhugh station has long played a crucial role in supporting Arkansas’s energy infrastructure. The recent expansion project will add two natural gas turbines, boosting the plant’s total generation capacity from 170 megawatts to 270 megawatts by the end of 2025. This increase will provide enough power to support an additional 100,000 meters, raising the total to approximately 600,000 people or meters served.

Local leaders and industry officials gathered on Friday to celebrate the expansion with a groundbreaking ceremony, marking the official start of construction in September. The project represents a pivotal move toward enhancing the region’s energy reliability, a factor seen as key to attracting further business investment in the area.

“Whether it’s small or extremely large, you have to have electricity. So this plant expansion offers electricity that brings in many more businesses to our area because they know they’re going to have a reliable power source,” said one regional official at the event.

Addressing Future Energy Needs

This expansion comes as part of a broader industry trend toward natural gas, a cleaner and more efficient energy source compared to coal and nuclear power. In line with this shift, AECC has decommissioned several nuclear and coal-fired plants in recent years. However, the industry’s transition to natural gas hasn’t been without its challenges. In 2021, a nationwide shortage of natural gas sparked a power crisis, leading to widespread outages and highlighting the importance of resource diversity in power generation.

AECC is addressing this issue through its “Balance of Power” philosophy, which emphasizes maintaining a diverse portfolio of energy sources to ensure both cost-effectiveness and reliability. While the new turbines will primarily run on natural gas, they will have the ability to switch to fuel oil in emergency situations, adding another layer of resilience to the grid.

“The energy sector is undergoing major changes, and we need to ensure we have the right mix of power generation resources,” said an AECC representative. “This project reflects our commitment to providing dependable electricity while keeping costs down for our members.”

Economic and Environmental Impacts

The expansion of the Fitzhugh station is expected to have a ripple effect on the local economy, not only by creating construction jobs but also by attracting new industries that rely on a stable power supply. As businesses increasingly prioritize sustainability, the move to natural gas could make the region more attractive to environmentally-conscious companies.

AECC’s continued investment in natural gas also aligns with the cooperative’s long-term goals to reduce carbon emissions while meeting growing energy demands. As the U.S. transitions toward cleaner energy, projects like this are seen as vital in balancing environmental concerns with the need for affordable and reliable electricity.

Construction is slated for completion in late 2025, at which point the new turbines will begin delivering much-needed power to Arkansas homes and businesses, further solidifying the state’s energy security for years to come.

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